Does gold’s long term view remain positive?

“Gold is likely to benefit from continued central-bank buying, which appears to be the strongest structural force in the precious metal markets, says Carsten Menke at Julius Baer. Central bank buying should continue for another three to five years given emerging economies’ desire to be less dependent on the dollar as a reserve currency and a below-average share of gold in their reserves, he says in a note. While volatility may remain elevated as long as the Iran war lasts, and concerns of U.S. monetary policy tightening persist, Julius Baer still sees a favorable fundamental backdrop for gold and remains constructive on the precious metal.”

“Gold rises in early Asian trade. The yellow metal has retreated from the $5,000 a troy ounce level as Treasury yields climb amid higher inflation risk from elevated energy prices, notes UOB’s research team in its 3Q outlook report. Further consolidation in gold prices could be necessary as investors weigh higher opportunity costs from the high-yield environment, the team adds. Still, the bank reiterates its long-term positive view on the precious metal. UOB projects gold prices to be around $4,600 an ounce in 3Q and $4,800 an ounce in 4Q, before rising to $5,000 an ounce in 1Q next year. Spot gold is up 0.5% at $4,349.71 an ounce.”